Chicago State chief backs housing fund

She says $75,000 is 'chump change'

June 09, 2007|By Jodi S. Cohen, Tribune higher education reporter

Under fire for a stinging state audit, Chicago State University President Elnora Daniel said Friday that her $75,000 annual allowance to run the university-owned president's house is "chump change" compared with what other university presidents get.

"They get more," said Daniel, whose annual compensation also includes a $232,875 salary, a driver and $10,000 in travel expenses for her spouse, dependents and other individuals.

Daniel's remarks came after a trustees meeting to review a state audit of the university that revealed sloppy record keeping and "numerous charges" to a university credit card, including meals, alcohol, cruise ship travel, theater tickets and first-class airfare, not supported by receipts, invoices or explanation.

Chicago State officials said Friday that they will implement stricter financial controls, including an expense report checklist and training on state regulations. Daniel blamed the incomplete documentation on staff turnover and employees who did not know state rules.

She said leadership conferences aboard cruise ships and expensive meals are part of her role in networking with donors. She credited such events as part of the reason why annual giving under her leadership has increased from $15 million to $33 million.

"I have in no way ever and never will inappropriately use funds that have been given to this university," Daniel said. "I would hope that one year ... would not be an indictment of the work I have done these nine years" as president.

Her comments came after harsh words from Rev. Leon Finney, a trustee who said he hopes Daniel will be "mindful of her fiduciary responsibilities."

"These are public funds -- not her funds -- to discharge," he said. "We must hold the chief executive officer accountable." Audit committee chairman Jim Reynolds said that he was satisfied Daniel is "taking proper steps to make sure these findings do not occur again as they pertain to her," and that the audit findings "were not significant from the perspective of seeing fraud, intent to deceive."

The audit, which covered fiscal 2006, found understatements of vacation and sick days, inadequate documentation of federal grants and miscalculation of financial aid.

Audit documents reviewed by the Tribune show about $19,000 in purchases Daniel made for the president's house, including some from the Home Shopping Network and Neiman Marcus. Most were not accompanied by receipts, according to the audit.

Daniel said a $75,000 annual allowance to operate the president's house pays for such housekeeping, repairs and purchases. The university would not provide a copy of Daniel's contract to the Tribune, citing "a clearly unwarranted invasion of personal privacy."